Response from Anasazi Group LLC

They don't have immunity from Illinois state law. They committed usury and Illinois's consumer protections laws prevent lenders from providing loans greater than 9% without a license. Plain and simple. If they were licensed, the cap on a consumer installment loan would be 99% and for a payday loan it's $15 for every $100 borrowed. Most of these companies have a generic form response that they use in order to get you to pay, citing some rhetoric that doesn't even apply as they themselves are illegal. You haven't knowingly committed fraud and until you got caught in this reloving payday loan trap you weren't aware there were better solutions out there. Stick to your guns. You are morally obligated to pay the principal balance but that is about it. A moral obligation is not a legal obligation. The legal definition is as follows: A duty which one owes, and which he ought to perform, but which he is not legally bound to fulfil.You aren't legally obligated to pay back the principal balance. No one here can tell you 100% that yes, you don't have to pay this back at all. Also, no one can tell you that you would be fine not paying. Offshore lenders and their predatory practices are easily dismissed because they have no legal precedent indicating they can practice the way they do. Tribal lenders are using soverignty as their crutch to avoid state laws and regulation. The problem is those lenders probably cannot pass the "arm of the tribe" test, but there is such a gray area here that often judges are left scratching their heads. You aren't likely to get dealt a lawsuit, because right now Martin A. Webb and his band of merry men are dealing with a class action suit in Illinois. If you want to pay the principal, it is on your terms and should not be done through your checking account directly. The lender has no standing at this point and allowing them to make comments to the contrary does you a disservice. Lay down the law, tell them how it is going to be but don't poke the bear.

Anasazi just recently did the same thing to me. They have given me severl shady ways to pay back the principle. I closed all of my accounts in fear they would access it. Luckily I have USAA and their fraud department is handling it very well. How can I pay back the 300 in a legal way? They only want to talk to me via telephone. In email I got the same response you did. I told them it was an illegal loan and I did not giver permission, but they say I did. AARRGGGG

Tell them you will only communicate by email. You are in charge here - not them. If they do not accept your offer to pay with money order or prepaid debit, then forget it.

This company sent an email directly to my employer/manager, and said that I had just been served.

I contacted the CA that was handling my acct. They let me make payment arrangements of $50.00 a month on the balance. However, they would not let up ion the on the $90.00 finance charge for the $300.00 loan.

I paid them only, because I work for a small company and I din't want further embarrassment. This was about 2-3 years ago.

A legitimate collector will not contact your employer via email to inform them you had just been served. You have to report that.

They are not allowed to discuss your debt with your employer as it is a violation of the FDCPA. By conducting business outside their "tribal jurisdiction", they must adhere to the FDCPA. If you were so inclined, you could sue them (though I doubt they'd actually pay)

i reported them to the BBB. Should I have reported them to the FTC and my state dept?

Yes, report them to the FTC and your state's AG.